Alger Focus Equity Fund on Western Digital Corporation
Thesis
Alger views Western Digital as a beneficiary of rising hyperscaler data-center spending and continued growth in data volumes. A consolidated HDD industry, a leading market position and a structural mix shift toward cloud customers improve the industry's supply-demand setup, especially as producers prioritize areal density instead of major unit-capacity additions. Strong results, robust cloud and enterprise storage demand and better pricing lifted margins above prior guidance.
“The HDD industry is highly consolidated, with only two scaled manufacturers, and Western Digital holds a leading market position.”